How to cut down on car insurance costs

Insurance premiums continue to climb, so save yourself a pound or two by keeping a cap on the cost of your car insurance. Follow these top tips to cheaper car insurance and you’ll be well on the way to saving some cash.

 1.             Shop Around

It may sound obvious but shopping around to find the best car insurance deal really can save you a significant sum. The Association of British Insurers (ABI) calculates that you can save up to 35% on your premium simply by comparing five car insurance providers. Take some time to make the comparison and you’ll thank yourself in the long run. Remember to compare like for like.

 2.             Renewal

When it gets to the time of year when your car insurance premium is up for renewal, don’t take the easy way out and simply renew automatically. Make sure your renewal quotation is competitive by following step 1 and shopping around. You may even be in a position to negotiate with your insurer and if not, simply switch to another provider.

 3.             Buy Online

The online world can save you a lot of time, hassle and money so log in and click through to shave pounds off the cost of your car insurance. Online quotations and applications require fewer resources than traditional methods of purchasing insurance, therefore online prices tend to be lower across the board.

 4.             Pay Upfront

If possible, pay for your insurance policy up front. This helps you save money in two ways. Firstly, most insurers will offer a discount if you pay upfront and in full. Secondly, making a one-off payment means you avoid paying the interest commonly found on monthly payment plans. A simple way to save some money!

 5.             Mileage

How many miles do you drive each year? It is worth calculating this figure as car insurance companies base policy price on annual miles travelled. Avoid making an estimated guess and try to work the figure out as accurately as possible. Consider any daily commutes to school, work or otherwise, as well as extra miles covered. A few minutes of sums could help to cut your annual costs. 

Going over your agreed mileage may invalidate your policy so don’t be tempted to underestimate annual mileage.  

 6.             Which level of cover?

Generally speaking, there are three types of cover provided by motor insurers: fully comprehensive, third party, fire and theft and third party. Fully comprehensive is the broadest type of car insurance available and offers the most protection, therefore is often the most expensive option.

Third party is the most basic type of insurance available. Depending on the value of your car, you may want to compare the cost for each different type of policy available in order to find the lowest price.

 7.             Car Park?

Where is your kept overnight? Over 50% of vehicle thefts occur after dark so keeping your car in a locked garage or driveway can help to lower insurance costs. If you can’t park in a garage or driveway, take extra precautions to secure your car, such as using an immobilizer, alarm or steering lock.

8.             Vehicle Valuation

Don’t assume that a more valuable car will equate to a higher insurance payout if anything goes wrong. Insurers will only pay out the current market value of a vehicle in the event of a claim so make sure the valuation of your vehicle is accurate. Overvaluing your vehicle will do nothing other than push up the price of your car insurance premium.


This is a guest post by Jennifer Adam. Jennifer is a part of the digital blogging team at who work with a growing number of finance brands. For more information about me, or to keep up to date with the latest in finance news, check out my posts at or visit my Twitter account, @cashzilla. 

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